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JULY 2, 2013 MINUTESCITY COUNCIL MAYOR WILLIAM D. SESSOMS, JR., At -Large VICE MAYOR LOUIS R. JONES, Bayside - District 4 GLENN R. DAVIS, Rose Hall - District 3 WILLIAM R. DeSTEPH, At -Large ROBERT M. DYER, Centerville - District 1 BARBARA M. HENLEY, Princess Anne - District 7 JOHND.MOSS, At -Large AMELIA ROSS-HAMMOND, Ketnpsville - District 2 JOHN E. UHRIN, Beach - District 6 ROSEMARY WILSON, At -Large JAMES L. WOOD, Lvnnhaven -District 5 CITY COUNCIL APPOINTEES CITY MANAGER - JAMES K. SPORE CITY ATTORNEY MARK D. STILES CITY ASSESSOR - JERALD D. BANAGAN CITY AUDITOR - LYNDON S. REMIAS CITY CLERK - RUTH HODGES FRASER, MMC CITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" CITY COUNCIL AGENDA 2 JULY 2013 CITY HALL BUILDING 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VIRGINIA 23456-9005 PHONE: (757) 385-4303 FAX (757) 385-5669 E-MAIL: Ctycncl@vbgov.com I. CITY MANAGER'S BRIEFINGS - Conference Room - A. PEMBROKE CENTRAL BUSINESS CORE DISTRICT William Macali, Deputy City Attorney B. COASTAL PROGRAM FY 2014 FUNDING David L. Hansen, Deputy City Manager II. CITY COUNCIL LIAISON REPORTS III. CITY COUNCIL COMMENTS IV. CITY COUNCIL AGENDA REVIEW V. INFORMAL SESSION A. B. C. - Conference Room - CALL TO ORDER — Mayor William D. Sessoms, Jr. ROLL CALL COUNCIL RECESS TO CLOSED SESSION 4:00 PM 5:30 PM II 1 VI. FORMAL SESSION - City Council Chamber - 6:00 PM A. CALL TO ORDER — Mayor William D. Sessoms, Jr. B. INVOCATION: Senior Pastor Kyle Wall Atlantic Shores Baptist Church C. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA D. ELECTRONIC ROLL CALL OF CITY COUNCIL E. CERTIFICATION OF CLOSED SESSION F. MINUTES 1. INFORMAL and FORMAL SESSIONS June 25, 2013 G. FORMAL SESSION AGENDA 1. CONSENT AGENDA H. PUBLIC HEARING 1. FRANCHISE OF CITY PROPERTY — 4201 Atlantic Avenue I. ORDINANCES/RESOLUTION 1. Ordinance and Resolution re the Cavalier Hotel to AUTHORIZE renovation and development: a. City Manager to EXECUTE documents set forth in the Term Sheet and other terms deemed legally sufficient by the City Attorney b. City Manager to ACCEPT the conveyance of easements c. $2,370,000 be FUNDED from the Open Space Program Site Acquisition III for the Green Space Easement d. "Cavalier Drive Improvements" is ESTABLISHED for FY 2013-2014 e. TRANSFER $1,224,520 from Various Site Acquisitions and $1,224,520 from Various Site Acquisitions II to fund construction of Cavalier Drive between Holly Drive and Atlantic Avenue f. AWARD a Franchise for Beach Operations on the East side of the New Cavalier (on the Oceanfront) g. AWARD of $8,200,000 Economic Development Investment (EDIP) funds to the Developer 2. Ordinance to TRANSFER $735,000 within the Capital Improvement Program (CIP) re funding dredging projects a. Lynnhaven Inlet Maintenance Dredging b. Rudee Inlet Federal Dredging II c. Various Minor Dredging II J. PLANNING 1. Application of ROY S. and LORI D. BESKIN for Modification of Condition No. 2.d of a Conditional Use Permit for open space promotion in the R-40 Zoning District to reduce the setback (approved July 9, 2002) at 4300 Wishart Road DISTRICT 4 — BAYSIDE RECOMMENDATION APPROVAL 2. Application of DAM NECK STORAGE, LLC for a Conditional Use Permit re bulk storage with a new warehouse building at 1453 London Bridge Road DISTRICT 3 — ROSE HALL RECOMMENDATION APPROVAL 3. Application of CARING TRANSITIONS for a Conditional Use Permit for vehicle rentals at 229 South Rosemont Road DISTRICT 3 — ROSE HALL RECOMMENDATION APPROVAL 4. Applications of TASTE UNLIMITED, LLC/BAYVILLE FARMS ASSOCIATES, L.C. at 4097 Shore Drive, DISTRICT 4 - BAYSIDE a. Conditional Change of Zoning from R-7.5 Residential to B-2 Community Business to construct a new building for the existing business b. Conditional Use Permit for an open-air market (seasonal produce stand) RECOMMENDATION APPROVAL 5. Application of BANKS ENTERPRISES, R.L.L.P for a Conditional Change of Zoning from B-2 Commercial Business to Conditional A-18 Apartment at 800 Baker Road to construct multifamily dwelling units DISTRICT 2 — KEMPSVILLE RECOMMENDATION APPROVAL 6. Application of PRINCESS ANNE PARTNERS for a Conditional Change of Zoning from AG -2 Agricultural to Conditional PDH -2 with an underlying R-7.5 Residential at 2368 Princess Anne Road to develop single-family homes DISTRICT 7 - PRINCESS ANNE DEFERRED April 13 and May 8, 2013 RECOMMENDATION APPROVAL 7. Application of CITY OF VIRGINIA BEACH to AMEND Section 209.2 of the City Zoning Ordinance (CZO) re the occupancy of temporary family health care structures RECOMMENDATION APPROVAL K. APPOINTMENTS GREEN RIBBON COMMITTEE HEALTH SERVICES ADVISORY BOARD HISTORICAL REVIEW BOARD HUMAN RIGHTS COMMISSION MINORITY BUSINESS COUNCIL PARKS and RECREATION COMMISSION VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION L. UNFINISHED BUSINESS M. NEW BUSINESS 1. August 6, 2013 Workshop Session — ("National Night Out") N. ADJOURNMENT PUBLIC COMMENT Non -Agenda Items Each Speaker will be allowed 3 minutes and each subject is limited to 3 Speakers ********************************** ******************************** If you are physically disabled or visually impaired and need assistance at this meeting, please call the CITY CLERK'S OFFICE at 385-4303 ******************************* 2013 CITY HOLIDAYS Independence Day - Thursday, July 4 .Labor Day - Monday, September 2 Veterans Day - Monday,vember II Thanksgiving Day & Day after Thanksgiving - Thursday. :November 28 & Friday, November 29 Christmas Eve (halfLday) - Tuesday, December 24 Christmas Day - Wednesday, December 25 07/02/2013 - gw -1 - VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia July 2, 2013 Mayor William D. Sessoms, Jr., called to order the City Council's Informal Session, in the City Council Conference Room, Tuesday, June 2, 2013, at 4:00 P.M. Council Members Present: Glenn R. Davis, William R. "Bill" DeSteph, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood. Council Members Absent.• John D. Moss July 2, 2013 -2 - CITY MANAGER'S BRIEFING PEMBROKE CENTRAL BUSINESS CORE DISTRICT ITEM #62947 4:00 P.M. The Mayor introduced and welcomed William Macali, Deputy City Attorney. Mr. Macali advised the Central Business District Core Ordinance was drafted in correlation with the Pembroke Strategic Growth Area "SGA": Central Business District Core Ordinance Jul} --3. 2013 Below is a map of the Pembroke SGA: Urban Districts Map, Pembroke SGA July 2, 2013 -3 - CITY MANAGER'S BRIEFING PEMBROKE CENTRAL BUSINESS CORE DISTRICT ITEM #62947(Continued) CBC District Map (tentative) ❑FJNESS core Mr. Macali provided this background in support of today's Briefing: BACKGROUND 11/09 - Pembroke SGA Plan adopted. Goal: Encourage urban -style development Problem: Current zoning does not allow the type of development contemplated by the Plan. The Plan recognizes this disconnect between it and the zoning ordinance July 2, 2013 -4 - CITY MANAGER'S BRIEFING PEMBROKE CENTRAL BUSINESS CORE DISTRICT ITEM #62947(Continued) This Ordinance is not an "Over -lay" Ordinance and most of the current zoning does not support "Urban" development. SGA Plan - URBAN development • Buildings closer to the street • Vertical development • Walkability/ connectivity • Mixed use development In line with the Pembroke SGA, below are examples of what is not supported by this Ordinance: July 2, 2013 -5 - CITY MANAGER'S BRIEFING PEMBROKE CENTRAL BUSINESS CORE DISTRICT ITEM #62947(Continued) July 2, 2013 -6 - CITY MANAGER'S BRIEFING PEMBROKE CENTRAL BUSINESS CORE DISTRICT ITEM #62947(Continued) This Ordinance allows mixed-use development and below are examples of the type of mixed-use development allowed: July 2, 2013 -7 - CITY MANAGER'S BRIEFING PEMBROKE CENTRAL BUSINESS CORE DISTRICT ITEM #62947(Continued) Again, this Ordinance is not an "Overlay" ordinance but will replace the existing zoning regulations for this District. Central Business Core District Ordinance Not an overlay ordinance - existing zoning (B-2, B-3, B -3A, B-4, B -4C) to be replaced by new zoning district - CBC Central Business Core District New zoning regs for the District will replace existing regs Same approach as in the ORDFBC July 2, 2013 -8 - CITY MANAGER'S BRIEFING PEMBROKE CENTRAL BUSINESS CORE DISTRICT ITEM #62947(Continued) Below are examples of "mixed-use" development this Ordinance allows: USES Very similar to current B -3A, except (main changes): • Parking garages and parking lots are conditional uses, while parking structures remain permitted principal uses • Restaurants within mixed-use buildings may have drive-throughs with a CUP Funeral homes allowed as conditional uses Greenhouses/nurseries within mixed-use buildings allowed as conditional uses Drive-throughs only on block interior or by CUP; No size/mixed-use requirements for grocery stores (but note they must still meet form requirements, e.g., height. build -to) Below are the Development Standards (Lot and Building Standards) with the most important Standards indicated in yellow as those represent the Standards to accomplish the "urban type" area: Development Standards Lot Standards (values expressed in feet unless otherwise indicated): Standard Lot area (min.) Lot width (min.) Front setback (min.) Side street setback (min.) District CBC 5,000 square feet 50 0 0 Side setback (min.) 0 or 5 Rear setback (min.) 0 or 5 Build -to zone' 0 - 10 Alley setback (min.) 5 Parking setback (min.) (TBD) Outdoor amenity space' 5% of lot area (min.) July 2, 2013 -9 - CITY MANAGER'S BRIEFING PEMBROKE CENTRAL BUSINESS CORE DISTRICT ITEM #62947(Continued) Development Standards, can't. Building Standards (values expressed in feet unless otherwise indicated): Standard District CBC Height (min.) 35' or 3 stories, whichever is lower Height (max.), None, subject to Section 202 Ground floor height (min.)2 12 Bldg. width in build -to zone3 75% Transparency (min.)4 30% ground floor, 15% upper floors Blank wall (max.)5 30 Permitted uses in mixed-use buildings6 (ground floor) Permitted uses in mixed-use buildings? (upper floors) A, B, C, D, E, F7, G, H A, B, C, D, E, F, G, H This Ordinance requires the development to "Build -to -Zone ": July 2, 2013 -10 - CITY MANAGER'S BRIEFING PEMBROKE CENTRAL BUSINESS CORE DISTRICT ITEM #62947(Continued) his is the reason for tr re s uirements and blank wall li Development Standards, cont. In both the Lot Standards and Building Standards, there are explanatory notes and in the Development Standards, there is a key to permitted uses in mixed-use buildings. (Similar format to ORDFBC) July 2, 2013 -11 - CITY MANAGER'S BRIEFING PEMBROKE CENTRAL BUSINESS CORE DISTRICT ITEM #62947(Continued) This Ordinance has specific requirements for outdoor displays and storage: Development Standards, c on't. Outdoor Display and Storage Outdoor displays: - Outdoor displays within 8' of building; - Must be taken in after closing; - No LP gas, ice machine, soda machines, pallets, etc.; - Can't block pedestrian use of sidewalk Outdoor storage: - Not overnight - Limited to PODS ordinance or with CUP This Ordinance has Flexible Development Provisions similar to the Form Based Code Ordinance: Flexible Development Provisions • Same as in ORDFBC: - Optional Forms of Development (administrative approval) - Alternative Compliance (City Council special exception July 2, 2013 -12 - CITY MANAGER'S BRIEFING PEMBROKE CENTRAL BUSINESS CORE DISTRICT ITEM #62947(Continued) The result is what is important and must be considered, not necessarily how the result is achieved: Flcxiblo Devolopment Previsions, cont Both are performance-based, i.e. the result is what matters, not how it is achieved. OFDs allow development to either conform to Development Standards or substitute something else that accomplishes the same objective The intent of this Ordinance is to have "active street frontage". This can be accomplished several different ways including, but not limited to, sidewalk cafe or plaza type setting: Flexibly Drvelopmynt Prok ions, ron't OFD example: Build -to provisions are intended to activate the street frontage by locating building facades close to the street, thereby providing a 1,uakit pedestrian -oriented streetscape. July 2, 2013 -13 - CITY MANAGER'S BRIEFING PEMBROKE CENTRAL BUSINESS CORE DISTRICT ITEM #62947(Continued) Fhahhr Dey,lopn„mt The same purpose is accomplished by setting the building facade more than the max. 10' and activating the areas some other way, e.g. sidewalk cafe, plaza, fountain or other outdoor amenity space In such cases, the building facade must conform to Design Guidelines Plaza Sidewalk Cafe FlextI Ie Uevolopment Provision. n't OFDs are allowed for: •Setbacks; -Build-to; •Height (min. or max.) •Transparency/blank wall •Public Art (new) July 2, 2013 -14 - CITY MANAGER'S BRIEFING PEMBROKE CENTRAL BUSINESS CORE DISTRICT ITEM #62947(Continued) The Alternative Compliance provision in this Ordinance allows even greater flexibility and creativity. This type of development will require City Council's approval with attachable reasonable conditions of approval Fk lk E, Nelopmcm Pmr Alternative Compliance Allows even greater flexibility/creativity Requires City Council approval by special exception Standards are more general than in the OFDs: 'Advances the stated goals and objectives of the Pembroke Strategic Growth Area Plan..." Consistent with or superior to Design Guidelines City Council may attach reasonable conditions of approval This Ordinance allows for Public Art in the District and meet the requirements below: Public Art New OFD to encourage public art in CBCD - Must be on same site (unless won't fit, can't he seen, etc.) and in a plainly visible location -Must be approved by Public Art Committee - May go on public property if it can't go on same site, but also needs Council approval -Must be maintained by property owner unless City approves -Artist must meet qualifications (recognition, prior experience, etc.). July 2, 2013 -15 - CITY MANAGER'S BRIEFING PEMBROKE CENTRAL BUSINESS CORE DISTRICT ITEM #62947(Continued) The sign regulations shall provide and support the "urban" ambience: Sign Regulations Urban ambience, urban signs Modeled after ORD sign regulations - Projecting signs, banners, hanging signs, sandwich hoards allowed (but must conform to Sign Design Guidelines) - Bonus signage if all signs conform to Sign Design Guidelines - Llectronic display signs only for Major Lntertainment Venues (e.g., Sandler Center) July 2, 2013 -16 - CITY MANAGER'S BRIEFING PEMBROKE CENTRAL BUSINESS CORE DISTRICT ITEM #62947(Continued) Sign Design Guidelines Voluntary except for special types of signs (projecting, banners, etc Basically the same as as used in the ORDFBC Development Design Guidelines • Follow Guiding Design Principles from SGA Plan • Cover: Street, sidewalk and building massing Building facade design Amenities, incl. public art Voluntary except as OFD (not mandatory if Development Standards met) Replace/supersede other design guidelines in Comp Plan July 2, 2013 -17 - CITY MANAGER'S BRIEFING PEMBROKE CENTRAL BUSINESS CORE DISTRICT ITEM #62947(Continued) Parking Regulations Substantially the same as current B -3A parking regulations with minor changes Transition Rules Similar to a grace period - allows plans submitted before ordinance is adopted to be reviewed under pre-existing zoning regs Not required by law, but Council has adopted these in the past (ORDFBC, etc.) Question is how long is grace period for approval (6 mos. in FBC) July 2, 2013 -18 - CITY MANAGER'S BRIEFING PEMBROKE CENTRAL BUSINESS CORE DISTRICT ITEM #62947(Continued) Below is a summary of the process to -date and the timeline in moving the Ordinance forward for City Council's consideration: Process 1/13 - 6/13: Staff Drafting 6/14/2013: Staff/CBDA meeting to discuss 6/13 - 7/13: Revisions; ongoing discussions with CBDA on remaining issues 7/2/13: City Council briefing and request to proceed 8/13: Public participation process (workshops; final decisions on boundaries and ordinance text) 9/13 or 10/13: Planning Commission 10/13 or 11/13: City Council adoption Mayor Sessoms thanked Mr. Macali and the entire team that has prepared the draft of this Ordinance. July 2, 2013 -19 - CITY MANAGER'S BRIEFING COASTAL PROGRAM FY2014 FUNDING ITEM #62948 4:52 P.M. Mayor Sessoms introduced and welcomed David L. Hansen — Deputy City Manager. Mr. Hansen advised he is before City Council with a problem; however, he also has a proposed solution. Coastal 'Program, rance to tr nsfefonds wi i .CIP for Dredging Projects Deputy City Manager Dave Hansen July 2, 3013 Pub 4lc The FY2013/2014 Adopted Budget did not restore the General Fund support for local cost share of the Coastal CIP; however, the City has information that the City will receive Federal appropriations from the Hurricane Sandy project: Why are we here? • Proposed Boat Tax replaced General Funds in the Recommended Coastal CIP • For good and meritorious reasons, the adopted budget did not include Boat Tax • Adopted budget did not restore General Fund support for local cost share of the Coastal CIP • Federal appropriations from Hurricane Sandy provided FY 14 funding for the Federal cost share • Cost share amounts finalized following budget approval 2 July 2, 2013 -20 - CITY MANAGER'S BRIEFING COASTAL PROGRAM FY2014 FUNDING ITEM #62948(Continued) The City has three navigation projects scheduled for FY 2014 that have insufficient local funding for execution identified below: Immediate Impacts • Three navigation projects scheduled for FY 14 have insufficient local funding for execution: — Lynnhaven Inlet Federal Dredging • TPC is $2.4M, local cost share is $450,000, BTC is $125.000 — Rudee Inlet Dredging • TPC is $3.2M, local cost share is $2.3M, BTC is $360,000 • Project includes 100% local betterment for outer deposition basin — Various Minor Dredging (Crab Creek 100% locally funded) • BTC is $250.000 Total Transfer Request - $735,000 3 Immediate Impacts Lynnhaven Inlet and Rudee Inlet are partnership projects with US Army Corps of Engineers — Failure to provide required local contributions jeopardizes continued federal participation — Funding transfer required NLT end of July 2013 Various Minor Dredging (Crab Creek) — Requires annual maintenance to facilitate access to Lynnhaven Municipal Boat Ramp — Boat Ramp facility constructed with partial funding from VMRC 4 July 2, 2013 -21 - CITY MANAGER'S BRIEFING COASTAL PROGRAM FY2014 FUNDING ITEM #62948(Continued) The City has some residual funds that can be reprogrammed to complete the current dredging projects identified below: Sources for Transfer • Williams Farm Community Rec Center, CIP 4-071 — Residual funding available for reprogramming: $618,000 • Landfill #2 Phase I Capping, CIP 8-003 — Design and first phase of construction in FY 14: sufficient funding — Design and construction of second phase to begin in FY 15 — $117,000 will need to be restored in next CIP cycle 5 Below is a brief overview of the Coastal CIP. Brief Overview of Coastal CIP • Maintenance & Sustainability • Individual Projects • Surveys & Monitoring • Environmental & Regulatory • Beach Replenishment • Atlantic Ocean • Chesapeake Bay • Navigational Dredging Neighborhood Navigation SSD Program ✓ Landfill #2 6 July 2, 2013 -22 - CITY MANAGER'S BRIEFING COASTAL PROGRAM FY2014 FUNDING ITEM #62948(Continued) The Beach Replenishment Division in the Coastal Program provides sand replenishment for the City's public beaches, which in turn, provides storm protection, supports the City's tourism and provides a multitude of recreational opportunities. Coastal Program Beach Replenishment — Public Beaches • Resort Beach • Sandbridge Beach • Ocean Park Beach • Cape Henry Beach — Provides storm protection — Supports tourism industry — Provides recreational opportunities 7 Coastal Program Beach Replenishment — Chesapeake Beach • Sand search completed • Real Estate issues working • Anticipate larger scale initial beach restoration • Future replenishments of smaller scale 8 July 2, 2013 -23 - CITY MANAGER'S BRIEFING COASTAL PROGRAM FY2014 FUNDING ITEM #62948(Continued) The Navigational Dredging Division keeps the City's inlets and main channels navigable, supports waterfront/marine industry and provides a multitude of recreational opportunities: Coastal Program Navigational Dredging — Keeps our inlets and main channels navigable • Rudee Inlet channel system • Lynnhaven Inlet, bay and connecting waters • Eastern and Western Branches Lynnhaven River • Crab Creek and Long Creek — Underpins waterfront property value — Supports waterfront/marine industry — Provides recreational opportunities s Coastal Program Neighborhood Navigational Dredging Special Service District Program > 3 districts created to date • Old Donation Creek • Bayville Creek • Shadowlawn > 4 districts in petition phase • Chesopeian Colony • Harbour Point • Gills Cove • Thoroughgood Cove > Several others under evaluation 10 July 2, 2013 -24 - CITY MANAGER'S BRIEFING COASTAL PROGRAM FY2014 FUNDING ITEM #62948(Continued) Coastal Program Virginia Beach Landfill #2 — An important disposal option for residents of Virginia Beach — Operated in compliance with stringent environmental regulations — Substantial remaining capacity — Capping project for Phase I underway • Part 2 - Bid opening today • Minimum $9.5M needed in FY14 • 4 Phases (parts) 11 Staff recommends the transfer offunds to support the CIP: Coastal Program Staff recommendation City Council approve ordinance for transfer of $735,000 to support Coastal Program ( CIPs 8-013, 8-406, 8-011) Council Discussion 12 Mayor Sessoms thanked Mr. Hansen for his continued work on this project. July 2, 2013 -25 - CITY COUNCIL LIAISON REPORTS ITEM #62949 5:06 P.M. Councilman Uhrin advised he and Council Lady Ross -Hammond attended the most recent Towing Advisory Board meeting where the Board requested an increase in the towing rate fee to recoup the credit card discount fees. After working with the City Attorney's Office, Councilman Uhrin presented a proposed Ordinance with a $10.00 fee increase. Councilman Uhrin requested this item be placed on the next City Council Formal Session for consideration. ITEM #62950 Councilman DeSteph attended the recent Virginia Beach Community Development Corporation (VBCDC) meeting and discussed a few more concepts to the Workforce Housing Program the group will present to the Workforce Housing Advisory Board. ITEM #62951 Council Lady Ross -Hammond attended the recent Community Services Board meeting. They have requested more community input to assist the Board. Council Lady Ross -Hammond expressed her appreciation to Sheriff Stolle for his attendance at the meeting and information provided. July 2, 2013 -26 - CITY COUNCIL COMMENTS 5:10 P.M. ITEM #62952 Councilman Dyer advised the Dyer's welcomed a grandson yesterday and everyone is healthy and doing well. ITEM #62953 Also, Councilman Dyer received a number of emails and phone calls regarding the Pungo Airfield. Although this is tough economic times, he thinks it necessary to have a discussion amongst Members of City Council regarding the future of the Airfield now that Mr. Yagen is retiring. ITEM #62954 Council Lady Henley extended an invitation to attend the 4`'' of July Celebration at the Senior Resource Center. ITEM #62955 Council Lady Henley inquired with the City Manager if it would be possible to provide City Council Members verbatims on the Planning Commission's recommendations/citizen dialogues that have any kind of opposition. This would be very helpful. ITEM #62956 Council Lady Ross -Hammond attended the recent Police Academy Graduation where 23 Recruits graduated. Councilman Dyer did a nice job representing the City. July 2, 2013 -27 - AGENDA REVIEW SESSION 5:16 P.M. ITEM #62957 BY CONSENSUS, the following shall compose the CONSENT AGENDA: I. ORDINANCES/RESOLUTIONS 1. Ordinance and Resolution re the Cavalier Hotel to AUTHORIZE renovation and development: a. City Manager to EXECUTE documents set forth in the Term Sheet and other terms deemed legally sufficient by the City Attorney b. City Manager to ACCEPT the conveyance of easements c. $2,370,000 be FUNDED from the Open Space Program Site Acquisition III for the Green Space Easement d. "Cavalier Drive Improvements" is ESTABLISHED for FY 2013-2014 e. TRANSFER $1,224,520 from Various Site Acquisitions and $1,224,520 from Various Site Acquisitions II to fund construction of Cavalier Drive between Holly Drive and Atlantic Avenue f AWARD a Franchise for Beach Operations on the East side of the New Cavalier (on the Oceanfront) g. AWARD of $8,200, 000 Economic Development Investment (EDIP) funds to the Developer 2. Ordinance to TRANSFER $735,000 within the Capital Improvement Program (CIP) re funding dredging projects a. Lynnhaven Inlet Maintenance Dredging b. Rudee Inlet Federal Dredging II c. Various Minor Dredging II ITEM #1 a/b/c/d/e/f/g SHALL BE CONSIDERED SEPARATELY July 2, 2013 -28- A GENDA REVIEW SESSION ITEM #62957 (Continued) BY CONSENSUS, the following shall compose the PLANNING BY CONSENT AGENDA: J. PLANNING 1. Application of ROY S. and LORI D. BESKIN for Modification of Condition No. 2.d of a Conditional Use Permit for open space promotion in the R-40 Zoning District to reduce the setback (approved July 9, 2002) at 4300 Wishart Road DISTRICT 4 — BAYSIDE 2. Application of DAM NECK STORAGE, LLC for a Conditional Use Permit re bulk storage with a new warehouse building at 1453 London Bridge Road DISTRICT 3 — ROSE HALL 3. Application of CARING TRANSITIONS for a Conditional Use Permit for vehicle rentals at 229 South Rosemont Road DISTRICT 3 — ROSE HALL 4. Applications of TASTE UNLIMITED, LLC/BAYVILLE FARMS ASSOCIATES, L.C. at 4097 Shore Drive, DISTRICT 4 - BAYSIDE a. Conditional Change of Zoning from R-7.5 Residential to B-2 Community Business to construct a new building for the existing business b. Conditional Use Permit for an open-air market (seasonal produce stand) 5. Application of BANKS ENTERPRISES, R.L.L.P for a Conditional Change of Zoning from B-2 Commercial Business to Conditional A-18 Apartment at 800 Baker Road to construct multifamily dwelling units DISTRICT 2 — KEMPSVILLE 6. Application of PRINCESS ANNE PARTNERS for a Conditional Change of Zoning from AG -2 Agricultural to Conditional PDH -2 with an underlying R-7.5 Residential at 2368 Princess Anne Road to develop single-family homes DISTRICT 7 - PRINCESS ANNE 7. Application of CITY OF VIRGINIA BEACH to AMEND Section 209.2 of the City Zoning Ordinance (CZO) re the occupancy of temporary family health care structures July 2, 2013 -29- ITEM#62958 Mayor William D. Sessoms, Jr., entertained a motion to permit City Council to conduct its CLOSED SESSION, pursuant to Section 2.2-3711(A), Code of Virginia, as amended, for the following purpose: PERSONNEL MATTERS: Discussion, consideration of or interviews of prospective candidates for employment, assignment, appointment, promotion, performance, demotion, salaries, disciplining or resignation of specific public officers, appointees or employees pursuant to Section 2.2-3711(A) (1) Council Appointments: Council, Boards, Commissions, Committees, Authorities, Agencies and Appointees July 2, 2013 -30 - ITEM# 62958(Continued) Upon motion by Councilman Wood, seconded by Councilman Dyer, City Council voted to proceed into CLOSED SESSION at 5:21 P.M. Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: John D. Moss (Closed Session 5:21 P.M. 5:30 P.M.) July 2, 2013 -31 - FORMAL SESSION VIRGINIA BEACH CITY COUNCIL JULY2, 2013 6:00 P.M. Mayor William D. Sessoms, Jr., called to order the FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL in the City Council Chamber, City Hall, on Tuesday, July 2, 2013, at 6:00 P.M. Council Members Present: Glenn R. Davis, William R "Bill" DeSteph, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Absent: John D. Moss INVOCATION: Reverend Kyle Wall Senior Pastor Atlantic Shores Baptist Church PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA Mayor Sessoms DISCLOSED as an officer of TowneBank (which has a corporate office located at 297 Constitution Drive in Virginia Beach), he is directly and indirectly involved in many of TowneBank's transactions. However, due to the size of TowneBank and the volume of transactions it handles, TowneBank has an interest in numerous matters in which he is not personally involved and of which he does not have personal knowledge. In that regard, he is always concerned about the appearance of impropriety that might arise if he unknowingly participates in a matter before City Council in which TowneBank has an interest. Mayor Sessoms also has similar concerns with respect to Prudential Towne Realty, which is an affiliate of TowneBank. In order to ensure his compliance with both the letter and spirit of the State and Local Government Conflict of Interests Act (the `Act'), it is his practice to thoroughly review each City Council agenda to idents any matters in which he might have an actual or potential conflict. If during his review of an agenda, he identifies a matter in which he has a `personal interest ", as defined by the Act, he will either abstain from voting, or file the appropriate disclosure letter with the City Clerk to be included in the official records of City Council. Mayor Sessoms' letter of March 24, 2009, is hereby made a part of the record. July 2, 2013 -32 - Vice Mayor Jones DISCLOSED, for many years, he served on the Board of Directors of Resource Bank. Three (3) years ago, Fulton Financial Corporation ("Fulton Financial') purchased Resource Bank. On March 31, 2007, Vice Mayor Jones retired from the Board of Directors. Although, he is no longer a Board Member, he owns stock in Fulton Financial and that stock ownership causes him to have a "personal interest" in Fulton Financial. However, due to the size of Fulton Financial and the volume of transactions it handles in any given year, Fulton Financial, or any of the banks that are owned by Fulton Financial, may have an interest in numerous matters in which Vice Mayor Jones has no personal knowledge. In order to ensure his compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act, it is his practice to thoroughly review the agenda for each meeting of City Council for the purpose of identifying any matters in which he might have an actual or potential conflict. If, during his review, he identifies any matters, Vice Mayor Jones will prepare and file the appropriate disclosure letter to be recorded in the official records of City Council. Vice Mayor Jones regularly makes this disclosure. Vice Mayor Jones' letter of April 10, 2007, is hereby made a part of the record. Council Lady Rosemary Wilson DISCLOSED her husband is a principal in the accounting firm of Dixon Hughes Goodman and is directly and indirectly involved in many of Dixon Hughes Goodman's transactions. However, due to the size of Dixon Hughes Goodman and the volume of transactions it handles in any given year, Dixon Hughes Goodman has an interest in numerous matters in which her husband is not personally involved and of which she does not have personal knowledge. In order to ensure her compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act, it is her practice to thoroughly review the agenda for each meeting of City Council for the purpose of identifying any matters in which she might have an actual or potential conflict. If, during her review she identifies any matters, she will prepare and file the appropriate disclosure letter to be recorded in the official records of City Council. Council Lady Wilson regularly makes this disclosure. Council Lady Wilson 's letter of January 10, 2012, is hereby made a part of the record. Council Lady Rosemary Wilson DISCLOSED she is a Real Estate Agent affiliated with Prudential Decker Realty. Because of the nature of Real Estate Agent affiliation, the size of Prudential, and the volume of transactions it handles in any given year, Prudential has an interest in numerous matters in which she is not personally involved and of which she does not have personal knowledge. In order to ensure her compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act, it is her practice to thoroughly review the agenda for each meeting of City Council for the purpose of identifying any matters in which she might have an actual or potential conflict. If, during her review she identifies any matters, she will prepare and file the appropriate disclosure letter to be recorded in the official records of City Council. Council Lady Wilson regularly makes this disclosure. Council Lady Wilson 's letter of January 27, 2004, is hereby made a part of the record. July 2, 2013 Item -VI-E CERTIFICATION -33- ITEM #62959 Upon motion by Councilman DeSteph, seconded by Councilman Dyer, City Council CERTIFIED THE CLOSED SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS. Only public business matters lawfully exempt from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution applies. AND, Only such public business matters as were identified in the motion convening the Closed Session were heard, discussed or considered by Virginia Beach City Council. Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Robert M Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: John D. Moss July 2, 2013 RESOLUTION CERTIFICATION OF CLOSED SESSION VIRGINIA BEACH CITY COUNCIL WHEREAS: The Virginia Beach City Council convened into CLOSED SESSION, pursuant to the affirmative vote recorded in ITEM#62958 Page 30, and in accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.2-3712 of the Code of Virginia requires a certification by the governing body that such Closed Session was conducted in conformity with Virginia law. NOW, THEREFORE, BE IT RESOLVED: That the Virginia Beach City Council hereby certifies that, to the best of each member's knowledge, (a) only public business matters lawfully exempted from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution applies; and, (b) only such public business matters as were identified in the motion convening this Closed Session were heard, discussed or considered by Virginia Beach City Council. uth Hodges City Clerk raser, MMC July 2, 2013 Item -VI -F.1 MINUTES -34- ITEM #62960 Upon motion by Councilman Dyer, seconded by Council Lady Ross -Hammond, City Council APPROVED the MINUTES of the INFORMAL and FORMAL SESSIONS of June 25, 2013. Voting: 9-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin and James L. Wood Council Members Voting Nay: None Council Members Absent: John D. Moss Council Members Abstaining: Rosemary Wilson July 2, 2013 -35 - ADOPT AGENDA FOR FORMAL SESSION ITEM #62961 BY CONSENSUS, City Council ADOPTED: AGENDA FOR THE FORMAL SESSION July 2, 2013 -36 - Item -VI -H.1 PUBLIC HEARING ITEM #62962 Mayor Sessoms DECLARED A PUBLIC HEARING: FRANCHISE OF CITY PROPERTY 4201 Atlantic Avenue The following individual registered to speak Bart Frye, Jr., 2685 West Landing Road, Phone: 409-9000, spoke in FAVOR. Mr. Frye is excited to be a part of this Development and what this is going to do for the City. Greg Rutledge, Hanbury Evans, Phone: 79-321-9662, spoke in FAVOR. Mr. Rutledge assisted in inspecting/assessing the Cavalier from the roof to the basement to establish a "rehabilitative cost " for the developers. The Cavalier is very worthy of preservation and appreciates the City's support. William K Butler, II, 230 82nd Street, Phone: 428-1150, spoke in FAVOR. Mr. Butler stated this project will have major economic impact to the City and encourages the City to support his project. Sam Brown, 211 44th Street, Phone: 620-7766, spoke in FAVOR. Mr. Brown lives in Cavalier Shores and encouraged the City to support this project. Bernice Pope, 214 44`x' Street, Phone: 343-8666, spoke in FAVOR. Mrs. Pope acknowledged two iconic structures are in the City: Cape Henry Lighthouse and Cavalier on the Hill. The City has a wonderful opportunity to help preserve this structure for many generations to enjoy this wonder of a "Grand Hotel ". Henry Pearson, 1506 Snowbird Court, Phone: 417-9121, spoke in FAVOR. Mr. Pearson stated preserving history is vitally important to the City and encouraged the City to support this project. Bill Gambrell, 6304 Atlantic Avenue, spoke in FAVOR. Mr. Gambrell is a member of the Historic Preservation Commission and requested the City to support this project. Andrew Jackson, Phone: 472-0901,spoke in OPPOSITION to the funding of this project. Mr. Jackson advised he is not opposed to preserving this hotel but in using taxpayers' money to do so. Randy Dinzler, 312 Cavalier Drive, Phone: 575-9888, expressed concern regarding the rights of the surrounding properties. George Minns, representing the Seatack Community, spoke in OPPOSITION to the funding of this project. Warren Sachs, 125 86d` Street, Phone: 418-9033, expressed concern regarding the park easement that runs 50 feet alongside Cavalier Drive. Mr. Sachs would like to know which easements are being purchased; and, if the developers will work with the neighboring property owners, they will support his project. There being no further speakers, Mayor Sessoms CLOSED THE PUBLIC HEARING. July 2, 2013 -37 - Item —VI -I ORDINANCES/RESOLUTIONS ITEM #62963 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED, IN ONE MOTION, BY CONSENT, 2(a/b/c) of the CONSENT AGENDA, composed of Ordinances, Resolutions and the Planning Applications. Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R "Bill" DeSteph, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent. John D. Moss July 2, 2013 -38 - Item -VI-L 1 a/b/c/d/e/f/g ORDINANCES/RESOLUTIONS ITEM #62964 Upon motion by Councilman Uhrin, seconded by Council Lady Wilson, City Council ADOPTED, the Ordinance and Resolution to AUTHORIZE renovation and development of the Cavalier Hotel: a. City Manager to EXECUTE documents set forth in the Term Sheet and other terms deemed legally sufficient by the City Attorney b. City Manager to ACCEPT the conveyance of easements c. $2,370,000 be FUNDED from the Open Space Program Site Acquisition III for the Green Space Easement d. "Cavalier Drive Improvements" is ESTABLISHED for FY 2013-2014 e. TRANSFER $1,224,520 from Various Site Acquisitions and $1,224,520 from Various Site Acquisitions II to fund construction of Cavalier Drive between Holly Drive and Atlantic Avenue f. AWARD a Franchise for Beach Operations on the East side of the New Cavalier (on the Oceanfront) g. Voting: 7-1 AWARD of $8,200, 000 Economic Development Investment (EDIP) funds to the Developer Council Members Voting Aye: Glenn R. Davis, Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross -Hammond, John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: Robert M. Dyer Council Members Absent: John D. Moss Council Members Abstaining: William R. "Bill" DeSteph Mayor William D. Sessoms, Jr. July 2, 2013 1 ORDINANCE AND RESOLUTION APPROVING AND 2 AUTHORIZING (1) THE INCENTIVES TO THE 3 PURCHASER OF THE CAVALIER HOTEL CONTAINED IN 4 THE TERM SHEET, (2) THE DEVELOPMENT 5 AUTHORITY'S ACTIONS CONTEMPLATED BY THE TERM 6 SHEET, (3) THE CITY MANAGER'S EXECUTION OF ALL 7 DOCUMENTS NECESSARY TO IMPLEMENT THE 8 ACTIONS FOR THE RESTORATION AND 9 PRESERVATION OF THE HISTORIC CAVALIER HOTEL, 10 (4) THE ESTABLISHMENT OF CIP 2-046 (CAVALIER 11 DRIVE IMPROVEMENTS), (5) THE TRANSFER OF FUNDS 12 NECESSARY TO IMPLEMENT THE ACTIONS 13 CONTEMPLATED BY THE TERM SHEET AND (6) THE 14 AWARD OF A FRANCHISE FOR BEACH OPERATIONS 15 ON THE SANDY BEACH EAST OF THE NEW CAVALIER 16 17 WHEREAS, the Cavalier Hotel is a multi -structured hotel complex 18 consisting of three parcels located south of 42nd Street at the Virginia Beach oceanfront 19 (collectively, the "Cavalier Property"); 20 21 WHEREAS, the first parcel is an approximately 12.48 -acre parcel located 22 on the west side of Atlantic Avenue (the "Historic Cavalier"), which includes the historic 23 Cavalier Hotel structure (the "Cavalier on the Hill"); 24 25 WHEREAS, the second parcel is an approximately 2.54 -acre parcel on the 26 west side of Atlantic Avenue, which is used primarily for parking and recreational 27 purposes (the "Pacific Parcel"); 28 29 WHEREAS, the third parcel is an approximately 6.15 -acre parcel on the 30 east side of Atlantic Avenue and consists of a 282 -room hotel, conference center and 31 associated amenities (the "New Cavalier"); 32 33 WHEREAS, the Circuit Court of Buckingham County, Virginia (the "Court") 34 ordered the sale of the Cavalier Property, and appointed a receiver to find a buyer; 35 36 WHEREAS, on April 9, 2013, the Council of the City of Virginia Beach 37 adopted a resolution recognizing the historic and cultural significance of the Cavalier on 38 the Hill and expressing a willingness to provide incentives to a prospective buyer of the 39 Property who is willing to preserve and restore the Cavalier on the Hill; 40 41 WHEREAS, on June 10, 2013, the Court entered an order approving the 42 sale of the Property to Cavalier Associates, LLC (the "Developer"); 43 44 WHEREAS, the Developer and representatives of the City of Virginia 45 Beach (the "City") have negotiated a series of incentives for the Developer to preserve 46 and restore the Cavalier on the Hill, restore and expand the New Cavalier, and develop 47 a portion of the Historic Cavalier and Pacific Parcel as single family residences 48 (collectively the "Project"); 49 50 WHEREAS, the proposed incentives to the Developer and the rights and 51 obligations of the Developer, City and City of Virginia Beach Development Authority (the 52 "Authority") are set forth on a Cavalier Hotel Incentive Package Summary of Terms 53 dated June 14, 2013, 12:00 p.m. (the "Term Sheet"), attached hereto as Exhibit A; 54 55 WHEREAS, the obligations of the City and Authority will be funded as set 56 forth in the Term Sheet; 57 58 WHEREAS, as set forth in the Term Sheet, the Developer has requested 59 the City Council approve a franchise agreement to allow the Developer to operate a 60 beach equipment rental concession and provide food and non-alcoholic beverage 61 service to guests of the Cavalier on the Hill and the New Cavalier on the sandy beach 62 east of the New Cavalier (the "Franchise"); 63 64 WHEREAS, the City Council desires that the Authority approve the 65 transactions set forth in the Term Sheet to which it is a party and authorize the 66 execution of those documents by the Chair or Vice -Chair; and 67 68 WHEREAS, the City Council finds that the Project will stimulate the City's 69 economy, increase public revenues, enhance public amenities and preserve and protect 70 a historically significant structure in the City of Virginia Beach. 71 72 NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY 73 OF VIRGINIA BEACH, VIRGINIA: 74 75 1. That the transactions set forth in the Term Sheet attached hereto as 76 Exhibit A and incorporated herein are hereby approved and authorized and the City 77 Manager is hereby authorized to execute any documents necessary to evidence those 78 transactions so long as the documents are substantially consistent with the terms set 79 forth in the Term Sheet, and other terms, conditions or modifications as may be 80 acceptable to the City Manager, and are in a form deemed legally sufficient by the City 81 Attorney. 82 83 2. That the City Manager is authorized to accept the conveyance of 84 easements described in the Term Sheet. 85 86 3. That $2,370,000 is hereby authorized to be funded from Capital Project 87 CIP 4-308 (Open Space Program Site Acquisition III) for the acquisition by the City of 88 the Green Space Easement as defined in the Term Sheet. 89 90 4. That CIP 2-046, "Cavalier Drive Improvements," is hereby established 91 in the Capital Improvement Program for fiscal year 2013-2014. 92 5. That $1,224,520 is hereby transferred from Capital Project CIP 3-368 93 (Various Site Acquisitions), and $1,224,520 is hereby transferred from Capital Project 94 CIP 3-139 (Various Site Acquisitions II) for a total transfer of $2,449,040 to Capital 95 Project CIP 2-046 (Cavalier Drive Improvements), to fund the construction of Cavalier 96 Drive between Holly Road and Atlantic Avenue pursuant to a cost participation 97 agreement with the Developer. 98 99 6. That the Franchise is hereby approved on the terms contained in 100 the Term Sheet for a term of not more than five (5) years to commence at the earlier of 101 five (5) years after the date Developer acquires the Property or the date the New 102 Cavalier and the Cavalier on the Hill re -open following restoration and renovation. 103 104 7. That the Authority is hereby authorized to award $8,200,000 of 105 Economic Development Investment funds to the Developer on the terms and conditions 106 set forth in the Term Sheet. 107 108 AND BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF 109 VIRGINIA BEACH, VIRGINIA: 110 111 That the City Council requests and recommends that the Authority adopt a 112 Resolution consistent with this Ordinance and Resolution approving the transactions to 113 which it is a party in the Term Sheet and authorizing the execution of all necessary 114 documents related thereto. 115 116 Adopted by the Council of the City of Virginia Beach, Virginia, on the 2nd 117 day of July , 2013. APPROVED AS TO CONTENT: OCIA City Manager APPROVED AS TO CONTENT: CA12574 ent Services A \\vbgov.com\DFS1 \Applications\CityLawProd\cycom32\W pdocs\D013\P018\00074670.DOC 6/26/13 R-1 APPROVED AS TO LEGAL SUFFICIENCY: a} City Attorney EXHIBIT A Cavalier Hotel Incentive Package Summary of Terms 6-14-13 12:00 pm The Cavalier Hotel is a multi -structured hotel complex consisting of three (3) parcels located south of 42nd Street near the intersection of Atlantic and Pacific Avenues in the City of Virginia Beach, and described as follows: "New Cavalier" - Located on the east side of Atlantic Avenue containing approximately 6.15 acres of property, and consisting of a 282 -room hotel, conference center and associated amenities (GPIN 2418-96-6085 / 4201 Atlantic Avenue). "Historic Cavalier" — Located on the west side of Pacific Avenue, across from the New Cavalier, containing approximately 12.48 acres (GPIN 2418-95-1853 / 4200 Pacific Avenue), on which the Old Cavalier is located. "Pacific Parcel" - Located on the west side of Pacific Avenue and north of 40th Street. The parcel contains approximately 2.54 acres and is used as parking and for recreation (GPIN 2418-95-3425). The New Cavalier, Historic Cavalier and Pacific Parcel are collectively. referred to herein as the "Property". "Old Cavalier" - The historic multi -story hotel structure located on the Historic Cavalier parcel. On the grounds of the Historic Cavalier is an approximate 53,000 sq. ft. lawn (the "Lawn") located between the hotel building and Pacific Avenue. Also on the grounds of the Historic Cavalier is an approximately 36,700 sq. ft. entrance area located immediately to the north of the hotel building (the "Entrance Area"). The exact size of the Lawn and Entrance Area is subject to confirmation after a survey of the site. All of the parcels and areas described herein as shown on Exhibit A, attached hereto. Pursuant to an order of the Buckingham County Circuit Court, a court-appointed receiver has conducted a competitive bid process to sell the Property. As confirmed by an order of the Court entered on June 10, 2013, Cavalier Associates, LLC (the "Developer") was the successful bidder and has been awarded a contract to purchase the Property for a purchase price of $35,069,968. The City of Virginia Beach (the "City") and the City of Virginia Beach Development Authority (the "Authority") have recognized the historic and cultural significance of the Property, specifically the Historic Cavalier. To induce the Developer to purchase the Property and to preserve certain aspects of the Historic Cavalier as set forth below, the City and the Authority have offered certain incentives and accommodations to the Developer, and the 1 1-1172959.4 6-14-13 12:00 pm Developer has offered to take certain steps with respect to the preservation of the Historic Cavalier. This Term Sheet is an outline of terms. Moreover, this Term Sheet is not, nor is it intended to be, an offer, an acceptance, or a binding agreement of any kind. To the contrary, this Term Sheet is only a summary of the basic terms of a possible transaction which may be agreed to in principle only. Although this Term Sheet identifies many of the material issues, any possible transaction is complex and issues may arise during preparation and negotiation of definitive documentation that have not been discussed in this Tenn Sheet. Accordingly, legal obligations among the parties will only be as specified in any definitive agreements that ultimately may be approved by City Council, the Authority and the Developer's principals, and executed by all of the parties. Any obligations of the City are subject to appropriation of sufficient funds to meet that obligation by the City Council of the City of Virginia Beach. Additionally, none of the parties to this Term Sheet are under any obligation or duty to attempt to negotiate a transaction or any related documentation or, if such negotiations commence, to continue such negotiations. Nonetheless, by approving this Tenn Sheet, each party indicates its belief that this Term Sheet can form the basis for a transaction and the willingness to commence negotiation and preparation of definitive documentation toward that end. Section 1- Authority Obligations: 1_ Approve EDIP grant to Developer in the amount of $8,200,000 (the "Grant"). The Grant to be paid at Developer's acquisition of the Property ("Closing"). Execution of the Recapture Agreement (defined below) will be a prerequisite to payment of the Grant. The Grant is based on a total investment by the Developer of at least $205,000,000 (the "Developer Investment") in the Property, with at least $65,000,000 of the Developer Investment occurring within 3 years of Developer's commencement of rehabilitation of the Property, a cumulative investment by Developer of $130,000,000 occurring within 6 years of Developer's commencement of rehabilitation of the Property, and a cumulative total of $205,000,000 Developer Investment occurring within 9 years of Developer's commencement of rehabilitation of the Property. The calculation of the Developer's Investment shall include Developer's initial investment of the $35,069,968 acquisition cost, plus documented closing costs and expenses (the "Initial Investment"), but shall exclude the costs for the construction of residential real estate units on the "Land Side Properties" (as defined below) (the "Residential Construction Costs"). 2. Make annual incentive payment (collectively, the "Incentive Payments") to the Developer in an amount equal to the real estate taxes arising from the incremental increase in the assessed value of the Property over and above the purchase price of the Property as set forth herein, with a cap on the total incentive payments of $5,000,000. 1-1172959.4 6-14-13 12:00 pm Section 2 - City Obligations: 1. Approve and authorize Authority making the Incentive Payments. Purchase a private Green Space Easement over the Lawn and Entrance Area from the Developer, for $2,370,000 requiring (a) the Lawn to be maintained as green space and open space in substantially the .same form as it currently exists, including the landscaped "Cavalier" ground sign, with the City having the right to approve any material, permanent changes to appearance of the Lawn, provided, however, Developer reserves fall right to use the Lawn, including, but not limited to, catered and other events, and to make temporary installations of canopies, tents or similar items for special events on the Lawn, and (b) the Entrance Area to be maintained in substantially the same condition, including preservation and maintenance of the existing serpentine walls. Closing on the Green Space Easement to occur simultaneously with Developer's acquisition of the Property and Authority's award of the Grant. 3. Take steps necessary to assist the Developer in qualifying for gap financing as contemplated by Va. Code §58.1-3851.1. 4. Enter into a Cost Participation Agreement for road improvements (to be known as "Cavalier Drive") in a location at the northern portion of the Historic Cavalier to be determined by City and Developer in an amount not to exceed $2,449,040, with 50% to be paid simultaneously with Developer's acquisition of the Property (the "Roadwork Deposit") and 50% to be paid upon completion of the improvements to Cavalier Drive and verification of expenditures by the Developer for the improvements. The Cost Participation Agreement will be subject to a sole source determination by the City's purchasing agent. Developer to complete said improvements by the time the renovated Old Cavalier reopens. 5. City acknowledges Developer's plan to develop the Property essentially as set forth in this Term Sheet and Exhibit B. The City views this proposal favorably and agrees to fast track the process for submission and review of Developer's Rezoning and Site Plan submissions for the Property. 6. Support Developer's application to include the Old Cavalier in the National Register of Historic Places and the Virginia Landmarks Register in order to qualify for state and federal tax credits. If the Old Cavalier fails to be listed on either register, hold the Historic Easement, defined below. 7. Grant Developer an initial franchise of less than five (5) years (commencing on the re- opening of both the Old Cavalier and the New Cavalier or such earlier date as the parties mutually agree, but in no event later than five (5) years after Closing) to operate beach concessions on the sandy beach in front of the New Cavalier (including without limitation, umbrellas and beach chairs) and to service hotel and resort guests from the hotel's .food and beverage facilities consistent with Developer's operation of the Old Cavalier and the New Cavalier as a comprehensive, full service, destination resort. 1-1 172959.4 6-14-13 12:00 pm Section 3 - Developer Obligations: 1. Purchase the Property. 2. Developer shall rehabilitate the Old Cavalier and the New Cavalier essentially as set forth in the plan attached as Exhibit B. The Old Cavalier and the New Cavalier will be operated as a full service resort. The Old Cavalier will be revitalized in a manner suitable to its past distinction and in a manner that will not jeopardize the inclusion of the Old Cavalier in the National Register of Historic Places and the Virginia Landmarks Register. The entire Property will be redeveloped to create a signature resort and a landmark destination at the Virginia Beach oceanfront. Rehabilitation in accordance with fully permitted construction plans and specifications will commence on or prior to the date (the "Outside Commencement Date") that is the earlier to occur of (a) 1 year after receipt by Developer of all required approvals and permits (which Developer agrees to promptly submit and diligently pursue), and (b) 2 years after Closing. Once rehabilitation has commenced, Developer will continue thereafter in a timely manner until complete. The New Cavalier will include a full service resort hotel, a restaurant, and convention and meeting space. 3. Invest at least $205,000,000 (including the Initial Investment) in rehabilitation of: (i) the Old Cavalier, (ii) the New Cavalier, (iii) the beach club/ convention center at the New Cavalier, and (iv) a new hotel or timeshare structure on the site of the New Cavalier and the requisite infrastructure improvements, including purchase price for acquisition of the Property. 4. Construct residential units on the Historic Cavalier parcel and the Pacific Parcel ("Land Side Properties"). The residential units to be constructed on the Land Side Properties shall consist of single-family units with a mixture of lot and unit sizes, all to be designed and constructed in a high quality manner in accordance with a design developed specifically for these properties using high quality materials and exterior treatments, which will be designed to coexist with the live oaks and unique topography of the Land Side Properties. The architecture of the homes will be appropriate to and complementary of the examples of homes of the North End of Virginia Beach which meet these standards. Pedestrian walkways and landscaped accent areas will, where possible, complement and inter -connect the housing areas. 5. Right-of-way improvements at the northern portion of the Historic Cavalier shall include special paving, lighting and landscaping subject to plans approved by the City. On completion of the improvements, Developer shall dedicate any necessary right-of-way to the City and such improvements (Cavalier Drive) shall be a public street between Atlantic Avenue and Holly Road. Developer to post payment and performance bonds as customary for a municipal road project prior to receiving any funds. Prior to posting of bonds, Developer's obligation to complete right of way 4 1-1 172959.4 (-14-13 12:00 pm improvements shall be secured by a letter of credit or personal guaranty as provided with respect to the Recapture Agreement, defined below. 6. Apply for inclusion of the Old Cavalier on National Register of Historic Places and Virginia Landmarks Register. Developer will dedicate and record at Closing an historic preservation easement over the Old Cavalier to City of Virginia Beach (the "Historic Easement"). The Historic Easement will contain generally the same restrictions against redevelopment and requirements for preservation as would be imposed on Developer by inclusion on the federal and state registries (such restrictions to be effective during any period that the exterior of the Old Cavalier is not required to be preserved in its current form by either registry or otherwise) and will be superior to any deed of trust or other liens encumbering the Old Cavalier (the "Old Cavalier Encumbrances"). In the event of a casualty to the Old Cavalier such that the Old Cavalier no longer meets the Secretary of the Interior's Standards for Rehabilitation (which is a prerequisite for qualification for federal historic preservation tax incentives), Developer shall either (i) repair and/or restore the Old Cavalier to the Secretary of the Interior's Standards for Rehabilitation; or (ii) within six (6) months of the casualty, repay to the Authority $1,722,000 (the "Rehabilitation Grant. Reimbursement") (which is the portion of the Grant allocable to the improvements associated with the Old Cavalier) and, if the required bonds have not been posted or Cavalier Drive is not complete, repay the Roadwork Deposit to the City. If Developer elects this option (ii), the. Authority shall make no further Incentive Payments to Developer and if the bonds have not been posted, the agreement for the construction of Cavalier Drive shall terminate. In addition, if Developer elects option (ii) above, Developer may repurchase the Green Space Easement by repaying the City, within six (6) months of the casualty, $2,370,000 ("the Green Space Reimbursement"). Notwithstanding the foregoing, commencing on the twelfth (12t) anniversary of the date of Closing and on each of the next five (5) succeeding anniversaries thereof, the Rehabilitation Grant Reimbursement shall be reduced by $287,000.00 per year, resulting in no Rehabilitation Grant Reimbursement being due with respect to option (ii) above subsequent to the eighteenth (18th) anniversary of the date of Closing, it being understood that the full amount of the Green Space Reimbursement shall remain payable if Developer repurchases the Green Space Easement. 7. Execute the Recapture Agreement with the Authority for the Grant. The "Recapture Agreement" will provide for the repayment of 100% of the Grant by Developer to the Authority if, Developer fails to (a) promptly apply for inclusion of the Old Cavalier on the two historic registers, or (b) preserve the Old Cavalier structure in at least its current external form, or (c) commence rehabilitation of the Old Cavalier on or prior to the Outside Commencement Date. The Recapture Agreement will provide for repayment of a pro -rata sharea of the Grant by Developer to the Authority if, (1) Developer has not invested $65,000,000 of the Developer Investment in the Property by the end of the 3 year anniversary of commencement of rehabilitation of the Property, as provided herein, (2) Developer has not invested $130,000,000 of the That is, the portion of the Grant attributable to the shortfall in the Developer Investment. 5 1-1 172959.4 6-14-13 12:00 pm Developer Investment in the Property by the end of the 6 year anniversary of commencement of rehabilitation of the Property, as provided herein, (3) Developer has not invested the entire Developer Investment in the Property by the end of the 9 year anniversary of commencement of rehabilitation of the Property, as provided herein, (4) foreclosure proceedings are commenced under any of the Old Cavalier Encumbrances, or (5) Developer fails to complete the Cavalier Drive improvements by the time the renovated Old Cavalier reopens. If the Developer makes the full Developer Investment of $205,000,000 by such 9 year deadline, then Developer shall be entitled to recoup any amount of the Grant recaptured by the City. Recapture Agreement to be between Authority and Developer or an affiliated entity of Developer reasonably acceptable to City. Recapture Agreement (and Roadwork Deposit) to be secured to reasonable satisfaction of City and Authority through either the posting of a letter of credit initially in the amount of the Grant plus the Roadwork Deposit or a personal guaranty or guaranties from one or more of the principals of the Developer in the same amounts (if such guarantors do not include Bruce L. Thompson and the other principals of Developer, then the proposed guarantor(s) shall be subject to the City's reasonable approval). The amount of the guaranty/ letter of credit to be reduced by the amount of the Roadway Deposit on the posting of the bond for the completion of the improvements to Cavalier Drive. In addition, the amount of the guaranty/letter of credit will be proportionately reduced upon Developer providing proof of qualifying expenditures for the Grant, it being understood that the amount of the guaranty/letter of credit will be reduced upon the occurrence of the Closing by the pro -rata share of the Grant attributable to the Initial Investment and that any letter of credit posted at Closing shall not be required to include such amount. 8. In consideration for the making of the Grant by the Authority and approval by the City of the Authority's payment of the incentive payment of up to $5,000,000 for the incremental increase in real estate taxes on the entire Property, Developer agrees to execute a waiver of receipt of real estate tax exemption for the incremental increase to the historically significant structure (the Old Cavalier) as provided for in Section 35- 80.1 of the Code of Ordinances of the City of Virginia Beach. Section 4 - Next Steps: 1. June 10, 2013. The Developer awarded sales contract to Property by the Circuit Court of Buckingham County. 2 June 11, 2013. Developer to present general development plan in open session. City Council briefed in closed session on Tema Sheet. 3. June 18, 2013..Closed session briefing to Authority. Public briefing on Term Sheet at City Council work session. 6 1-1172959 4 6-14-13 12:00 pm 4. June 25, 2013. Public hearing/ public comment on Term Sheet at City Council meeting. 5. July 2, 2013. City Council to vote on undertaking obligations set forth in Section 2 above, and to approve the undertaking of the Authority obligations set forth in Section 1 above, conditioned on the Developer closing on the purchase of the Property as set forth below. 6. July 16, 2013. Authority vote on undertaking the obligations set forth in Section 1 above, and to approve the Grant. 7. July 19 or July 22, 2013. Developer to close on the Property, Authority to purchase the Open -Space Easement, Authority to award the Grant (EDIP) and Green Space Easement purchase money, City to pay Roadwork Deposit. 7 1-1772959.4 Exhibit A Depiction of Property 8 1-1172959.4 6-14-13 12:00 pm EXHIBIT: A Exhibit B Plan 9 1-1172959.4 6-14-13 12:00 pm W (CA12574) SUMMARY OF TERMS OF FRANCHISE FRANCHISOR: City of Virginia Beach (the "City") FRANCHISEE: Cavalier Associates, LLC PREMISES: The area of sandy beach immediately to the east of the Cavalier Hotel (the "New Cavalier") located at 4201 Atlantic Avenue, from the southernmost property line of the New Cavalier at 41st Street to the northernmost property line of the New Cavalier at 42nd Street. TERM: Five (5) years commencing on the earlier of (i) five years after the Closing (as defined in the Term Sheet attached to the Ordinance/Resolution), or (ii) the re -opening of the New Cavalier and the Cavalier on the Hill (as defined in the Term Sheet attached to the Ordinance/Resolution). RENT: N/A RIGHTS AND RESPONSIBILITIES OF FRANCHISEE: • Use of Premises: Operate beach equipment rental concession and provide food and non-alcoholic beverage service to guests of the New Cavalier and the Cavalier on the Hill. • Comply with all federal, state and local statutes, ordinances, and regulations now in effect or hereafter adopted, in the conduct of the Use of Premises. • Possess all necessary licenses, permits and insurance required for the Use of Premises. • Indemnify the City for any and all damages to persons or property in connection with the Use of Premises. • Franchisee acknowledges that its right to use the Premises is non-exclusive and that the Premises is a public beach and shall be open at all times for the use, recreation and enjoyment of the public. (CA12574) RIGHTS AND RESPONSIBILITIES OF FRANCHISOR / CITY: • Shall have the right to inspect the Premises at any and all reasonable times, with or without notice, for the purpose of determining Franchisee's compliance with the provisions of the Franchise Agreement (the "Agreement"). • So long as Franchisee is in compliance with all provisions of the Agreement, City shall not grant any other franchises or permits for rental of beach equipment or sales of refreshments on the Premises. • Shall have the right to cancel the Agreement and terminate the franchise if the Franchisee fails to comply with any of the provisions of the Agreement. BILL DESTEPH COUNCILMAN - AT -LARGE In Reply Refer to: 0049100 City of Virginia Beach April 9, 2013 Mrs. Ruth Hodges Fraser, MMC City Clerk Municipal Center Virginia Beach, Virginia 23456 VBgov.com PHONE: (757) 496-4646 CELL: (757)339-6105 BDESTEPH@VBGOV.COM Re: Abstention Pursuant to Section 2.2-3115(F), Code of Virginia Dear Mrs. Fraser: Pursuant to the Virginia Conflict of Interests Act, Section 2.2-3115(F), Code of Virginia, I make the following declaration: 1. I am executing this written disclosure regarding City Council's discussion and vote a resolution in support of incentives to prospective purchasers to preserve the historic Cavalier on the Hill hotel. The property is located near the intersection of Atlantic Avenue and 42nd Street. 2. I have been asked to serve as an investor for one or more prospective purchasers of the property. 3. Although the City Attorney has advised me that the Act does not require me to abstain, I nevertheless wish to voluntarily disclose my interest in this transaction and abstain from voting on this matter. Accordingly, I respectfully request that you record this declaration in the official records of City Council. 2401 COURTHOUSE DRIVE, VIRGINIA BEACH, VIRGINIA 23456 III Mrs. Ruth Hodges Fraser -2- April 9, 2013 Re: Abstention Pursuant to Section 2.2-3115(F), Code of Virginia Thank you for your assistance in this matter. Bill R. DeSteph Councilmember BRD/RRI -39- Item-VI-L2a/b/c ORDINANCES/RESOLUTIONS ITEM #62965 Upon motion by Vice Mayor Jones, seconded by Council Lady Wilson, City Council ADOPTED, BY CONSENT, Ordinance to TRANSFER $735,000 within the Capital Improvement Program (CIP) refunding dredging projects a. Lynnhaven Inlet Maintenance Dredging b. Rudee Inlet Federal Dredging II c. Various Minor Dredging II Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Robert M. Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: John D. Moss July 2, 2013 1 AN ORDINANCE TO TRANSFER $735,000 2 WITHIN THE CAPITAL IMPROVEMENT 3 PROGRAM TO PROVIDE FUNDING FOR 4 DREDGING PROJECTS 5 6 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 7 VIRGINIA: 8 9 That a total of $735,000 is hereby transferred within the FY 2013-14 Capital 10 Budget, 11 12 1. With $618,000 provided from Project 4-071 — Williams Farm Community 13 Recreation Center, and $117,000 provided from 8-003 — Landfill #2 Phase I 14 Capping; and 15 16 2. That $125,000 is allocated to Project 8-013 — Lynnhaven Inlet Maintenance 17 Dredging, $360,000 is allocated to 8-406 — Rudee Inlet Federal Dredging II, 18 and $250,000 is allocated to 8-011 — Various Minor Dredging II. Adopted by the Council of the City of Virginia Beach, Virginia on the 2nd day of July 2013. Requires an affirmative vote by a majority of all the members of City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Management Services CA12679 R-1 June 24, 2013 City Attorney's Office Item -VI-J PLANNING -40- ITEM #62966 1. ROY S. and LORI D. BESKIN MODIFICATION FO CONDITION NO. 2 2. DAM NECK STORAGE, LLC CONDITIONAL USE PERMIT 3. CARING TRANSITIONS CONDITIONAL USE PERMIT 4. TASTE UNLIMITED, LLC/ CHANGE OF ZONINGONDITIONAL BAYVILLE FARMS ASSOCIATES, L.C. USE PERMIT 5. BANKS ENTERPRISES, R.L.L.P 6. PRINCESS ANNE PARTNERS 7. CITY OF VIRGINIA BEACH CONDITIONAL CHANGE OF ZONING CONDITIONAL CHANGE OF ZONING AMEND CITY ZONING ORDINANCE July 2, 2013 -41 - Item -VI-J PLANNING ITEM #62967 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED IN ONE MOTION, BY CONSENT, Items 1, 2, 3, 4a/b, 5, 6 and 7 of the PLANNING AGENDA. Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: John D. Moss July 2, 2013 -42 - Item -VI -J.1 PLANNING ITEM #62968 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED/CONDITIONED, BY CONSENT, Application of ROY S. and LORI D. BESKIN for Modification of Condition No. 2.d of a Conditional Use Permit for open space promotion in the R-40 Zoning District to reduce the setback (approved July 9, 2002) at 4300 Wishart Road DISTRICT 4 — BAYSIDE BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of ROY S. and LORI D. BESKIN for Modification of Condition No. 2.d of a Conditional Use Permit for open space promotion in the R-40 Zoning District to reduce the setback (approved July 9, 2002) at 4300 Wishart Road (GPIN 1478866017) DISTRICT 4 — BAYSIDE The following conditions shall be required: 1. All conditions, with the exception of 2.d. attached to the Conditional Use Permit granted by the City Council on July 9, 2002, shall remain in effect. 2. Condition 2.d. of the July 9, 2002, Conditional Use Permit is deleted and replaced with the following:: Lots 17 and 20 have minimum side yard and front yard setbacks of no less than fifty (50) feet from any right-of- way. Lots 17 and 20 shall be provided access only from the cul-de-sac. This Ordinance shall be effective in accordance with Section 107(f) of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Second day of July, Two Thousand Thirteen July 2, 2013 -43 - Item -VI -J.1 PLANNING ITEM #62968(Continued) Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: John D. Moss July 2, 2013 -44- Item—VI-J.2 PLANNING ITEM #62969 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED/CONDITIONED, BY CONSENT, Application of DAM NECK STORAGE, LLC for a Conditional Use Permit re bulk storage with a new warehouse building at 1453 London Bridge Road DISTRICT 3 — ROSE HALL BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of DAM NECK STORAGE, LLC for a Conditional Use Permit re bulk storage with a new warehouse building at 1453 London Bridge Road (GPIN 1495566421) DISTRICT 3 — ROSE HALL The following conditions shall be required: 1. Except as otherwise modified by any other condition of this Use Permit, the bulk storage yard shall be located on the site in substantial conformance with the submitted Plan, entitled "Preliminary Site Development Plan of Vector Park for The Miller Group Companies," prepared by NDI Engineering Company, dated 11/19/12. 2. The exterior design, colors and materials of the building to be constructed on the Site shall be substantially consistent with the design, colors and materials of the existing buildings on the site, as depicted on the submitted Building Elevation drawing submitted with the application, entitled "Vector Park Building 3, " prepared by LPA Architecture, and dated 22 February 2013. Said approved design, colors and materials are on file at the Virginia Beach Department of Planning. 3. Any lighting for the storage yard shall be limited to light packs installed on the building and fence, as well as pole lighting not to exceed a maximum height of fifteen (15) feet. All lighting shall be shielded and directed downward to limit the amount of light overspill outside the property boundary. 4. The material of the solid fence depicted on the Site Plan referenced by Condition 1 shall be vinyl or other similar maintenance free material. 5. Based upon the fact that only one (1) side of the bulk storage yard is visible from a public right-of-way, as well as a finding that there will be no significant detrimental effects on surrounding properties due to the elimination of landscape screening for the other three (3) sides of the storage yard as required by Section 228 of the Zoning Ordinance, the screening of the perimeter of the storage yard, as shown on the Plan referenced in Condition 1, shall be allowed, as provided for by Section 221(i) of the Zoning Ordinance. July 2, 2013 -45- Item—VI-J.2 PLANNING ITEM #62969(Continued) This Ordinance shall be effective in accordance with Section 107(f) of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Second day of July, Two Thousand Thirteen Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: John D. Moss July 2, 2013 -46 - Item -VI -J.3 PLANNING ITEM #62970 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED/CONDITIONED, BY CONSENT, Application of CARING TRANSITIONS for a Conditional Use Permit for vehicle rentals at 229 South Rosemont Road DISTRICT 3 — ROSE HALL BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of CARING TRANSITIONS for a Conditional Use Permit for vehicle rentals at 229 South Rosemont Road (GPIN 1487613572) DISTRICT 3 — ROSE HALL The following conditions shall be required: 1. The hours of operation shall be between 8:00 A.M. until 6:00 P.M, Monday through Saturday. 2. There shall be no on-site washing, detailing or maintenance of any motor vehicles or trailers. 3. There shall be no vehicle repair performed on the site. There shall be no storage of inoperable, wrecked or dismantled vehicles on the site. 4. No outdoor paging system shall be permitted. 5. All outdoor lighting shall be shielded to direct light and glare onto the premises. Said lighting and glare shall be deflected, shielded and focused away from adjoining property. Any outdoor light fixtures shall not be erected any higher than fourteen (14) feet. 6. No more than a total of eleven (11) rental vehicles or trailers shall be allowed on the site at any one time. No more than three (3) rental trucks or trailers shall be displayed at the front of the lot as indicated on the Plan referenced below. All other rental vehicles and trailers shall be parked in the area of the site that has been indicated on the marked -up topographic survey entitled, "Building Addition; 229 S. Rosemont Road" by the Spectra Group, Inc., and dated November 4, 2006. 7. Rental vehicles or trailers, situated in front of the building, between Rosemont Road and the building, shall not exceed seventeen (17) feet. This Ordinance shall be effective in accordance with Section 1070 of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Second day of July, Two Thousand Thirteen July 2, 2013 -47 - Item -VI -J.3 PLANNING ITEM #62970(Continued) Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R "Bill" DeSteph, Robert M Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: John D. Moss July 2, 2013 -48- Item-VI-J.4a/b PLANNING ITEM #62971 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED AS PROFFERED/CONDITIONED, BY CONSENT, Applications of TASTE UNLIMITED, LLC/BAYVILLE FARMS ASSOCIATES, L.C. at 4097 Shore Drive, DISTRICT 4 - BAYSIDE a. Conditional Change of Zoning from R-7.5 Residential to B-2 Community Business to construct a new building for the existing business b. Conditional Use Permit for an open-air market (seasonal produce stand) BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Applications of TASTE UNLIMITED, LLC/BAYVILLE FARMS ASSOCIATES, L.C. at 4097 Shore Drive, (GPIN8039) DISTRICT 4 - BAYSIDE a. Conditional Change of Zoning from R-7.5 Residential to B-2 Community Business to construct a new building for the existing business An Agreement encompassing proffers shall be recorded with the Clerk of the Circuit Court. b. Conditional Use Permit for an open-air market (seasonal produce stand) The following conditions shall be required: 1. The hours of operation for the produce stand shall be the same as the hours of operation of the retail and eating establishment, which is no earlier than 7:00 A.M. and no later than 10.•00 P.M. 2. All goods sold under the "Open Air Market" Conditional Use Permit shall be limited to produce and/or canned or jarred goods prepared from locally grown produce or aquaculture. 3. The seasonal sale of pumpkins shall be limited to the months of October and November. 4. The seasonal sale of Christmas trees shall be limited to the months of November and December. 5. With the exception of goods displayed and sold within the produce stand and the seasonal sale items of pumpkins and Christmas trees, all goods sold under the "Open Air Market" Conditional Use Permit shall be located and displayed on grass no further than twenty-five (25) feet from the produce stand. July 2, 2013 -49- Item-VI-J.4a/b PLANNING ITEM #62971(Continued) 6. The seasonal goods of pumpkins and Christmas trees shall be displayed on the front lawn no closer than fifteen (15) feet to the property line or the "existing exit aisle to remain." 7. No additional signage than that shown on "Exhibit C," dated May 22, 2023, shall be allowed without the review of the Zoning Administrator. 8. The dumpster shall be completely screened by evergreen vegetation with the exception of the North facing side for means of access. This Ordinance shall be effective in accordance with Section 1070 of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Second day of July, Two Thousand Thirteen Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: John D. Moss July 2, 2013 -50 - Item -VI -J.5 PLANNING ITEM #62972 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED AS PROFFERED, BY CONSENT, Application of BANKS ENTERPRISES, R.L.L.P for a Conditional Change of Zoning from B-2 Commercial Business to Conditional A-18 Apartment at 800 Baker Road to construct multifamily dwelling units DISTRICT 2 — KEMPSVILLE BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of BANKS ENTERPRISES, R.L.L.P for a Conditional Change of Zoning from B-2 Commercial Business to Conditional A-18 Apartment at 800 Baker Road to construct multifamily dwelling units (GPIN 1468129943) DISTRICT 2 — KEMPSVILLE The following condition shall be required: An Agreement encompassing Proffers shall be recorded with the Clerk of Circuit Court. This Ordinance shall be effective in accordance with Section 1070 of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Second day of July, Two Thousand Thirteen Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R "Bill" DeSteph, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: John D. Moss July 2, 2013 -51 - Item -VI -J.6 PLANNING ITEM #62973 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED AS PROFFERED, BY CONSENT, Application of PRINCESS ANNE PARTNERS for a Conditional Change of Zoning from AG -2 Agricultural to Conditional PDH -2 with an underlying R-7.5 Residential at 2368 Princess Anne Road to develop single-family homes DISTRICT 7 - PRINCESS ANNE BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of PRINCESS ANNE PARTNERS for a Conditional Change of Zoning from AG -2 Agricultural to Conditional PDH -2 with an underlying R-7.5 Residential at 2368 Princess Anne Road to develop single-family homes (GPIN 2404035813) DISTRICT 7 - PRINCESS ANNE The following condition shall be required: An Agreement encompassing Proffers shall be recorded with the Clerk of Circuit Court. This Ordinance shall be effective in accordance with Section 107(f) of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Second day of July, Two Thousand Thirteen Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Robert M. Dyer, Council Lady Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross - Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: ' John D. Moss July 2, 2013 -52 - Item -V-K.7 PLANNING ITEM #62974 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT, Application of CITY OF VIRGINIA BEACH to AMEND Section 209.2 of the City Zoning Ordinance (CZO) re the occupancy of temporary Family Health Care structures Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Robert M. Dyer, Council Lady Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross - Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: John D. Moss July 2, 2013 1 AN ORDINANCE TO AMEND SECTION 209.2 2 OF THE CITY ZONING ORDINANCE 3 PERTAINING TO THE OCCUPANCY OF 4 TEMPORARY FAMILY HEALTH CARE 5 STRUCTURES 6 7 Section Amended: City Zoning Ordinance § 209.2 8 9 WHEREAS, the public necessity, convenience, general welfare and good zoning 10 practice so require; 11 12 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA 13 BEACH, VIRGINIA: 14 15 That Section 209.2 of the City Zoning Ordinance is hereby amended and 16 reordained to read as follows: 17 18 Sec. 209.2. Temporary family health care structures. 19 20 (a) For purposes of this section: 21 22 23 24 (3) "Temporary family health care structure" means a transportable residential 25 structure, providing an environment facilitating a caregiver's provision of 26 care for a mentally or physically impaired person, that (i) is primarily 27 assembled at a location other than its site of installation, (ii) is limited to 28 one occupant who shall be the mentally or physically impaired person or, 29 in the case of a married couple, two occupants, one of whom is a mentally 30 or physically impaired person, and the other requires assistance with one 31 or more activities of daily living, as certified in writing by a physician 32 licensed in the Commonwealth, (iii) has no more than three hundred (300) 33 gross square feet, and (iv) complies with applicable provisions of the 34 Industrialized Building Safety Law (Code of Virginia §§ 36-70 through 36- 35 85.1) and the Uniform Statewide Building Code (Code of Virginia §§ 36-97 36 through 36-119.1). 37 38 39 40 (g) Any temporary family health care structure installed pursuant to this section shall 41 be removed no later than thirty (30) sixty (60) days after the temporary family health 42 care structure was last occupied by a mentally or physically impaired person is no 43 longer receiving or in need of the ascistancc services provided for in this section. 44 45 COMMENT 46 47 The amendments to this section are required by the adoption of House Bill 1419, which 48 becomes effective on July 1, 2013. These amendments allow for temporary family health care 49 structures to be occupied by two adults if they are married and are both in need of some level of 50 service. It also increases the time from 30 days to 60 days for the removal of the structure after it is 51 no longer needed. 52 53 Adopted by the Council of the City of Virginia Beach, Virginia, on the 2nd day of July , 2013. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Planni g Ij-partment CA12633 R-2 May 1,2013 City Attorney's Office 2 -53 - ITEM V -L APPOINTMENTS ITEM #62975 BY CONSENSUS, City Council RESCHEDULED the following APPOINTMENTS: GREEN RIBBON COMMITTEE HEALTH SERVICES ADVISORY BOARD HISTORICAL REVIEW BOARD HUMAN RIGHTS COMMISSION PARKS AND RECREATION COMMISSION VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION July 2, 2013 -54 - ITEM V -L APPOINTMENTS ITEM #62976 Upon NOMINATION by Vice Mayor Jones, City Council REAPPOINTED: ELIZABETH TWOHY SHEWLING M. WONG Three Year Term — 09/01/2013 — 08/31/2017 VIRGINIA BEACH DEVELOPMENT AUTHORITY Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R "Bill" DeSteph, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: John D. Moss July 2, 2013 -55 - ITEM V -L APPOINTMENTS ITEM #62977 Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED: KELVIN W. ARTHUR Two Year Term — 06/01/2013 — 05/31/2015 MINORITY BUSINESS COUNCIL Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: John D. Moss July 2, 2013 -56 - ITEM V -L NEW BUSINESS ITEM #62978 CANCELLED, BY CONSENSUS August 6, 2013 Workshop Session to allow Member of City Council to participate in neighborhood celebrations of "National Night Out" July 2, 2013 -57 - Item -V-M ADJOURNMENT ITEM #62979 Mayor William D. Sessoms, Jr., DECLARED the City Council Meeting ADJOURNED at 7:00 P.M. &.C�le_ Amanda Finley -Barnes, CMC Chief Deputy City Clerk -111111, th Hodges F aser, MMC City Clerk City of Virginia Beach Virginia William D. Sessoms, Jr. Mayor July 2, 2013 -58 - PUBLIC DIALOGUE There being no registered speakers, the PUBLIC DIALOGUE re Non -Agenda Items, City Council was adjourned at 7:OOP.M. July 2, 2013